Portrait of Alexandria Ocasio-Cortez
Politician · policy
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Alexandria Ocasio-Cortez on Income Tax

Supports higher top marginal rates (strong)

Alexandria Ocasio-Cortez clearly advocates for raising the marginal tax rate on the highest income earners in the United States to fund her ambitious legislative agenda, including the Green New Deal.

She has specifically proposed a marginal tax as high as 70% on income exceeding $10 million as a necessary mechanism to generate the revenue required for major societal investments. This proposal is central to her economic philosophy, which prioritizes government spending on priorities like climate action and social welfare over adherence to deficit-neutral fiscal rules.

Furthermore, Ocasio-Cortez has opposed budgetary rules, such as the pay-as-you-go rule, that would constrain her ability to enact new spending balanced by these higher taxes on the wealthy. She draws parallels to the original New Deal, suggesting that substantial deficit spending, financed by taxing the rich, is necessary for transformative change.

Context

Alexandria Ocasio-Cortez's stance on income tax is intrinsically linked to her progressive platform, which calls for substantial federal investment in areas like climate change mitigation, healthcare, and education. As a self-described democratic socialist, she views progressive taxation, particularly on high incomes, as the primary tool for achieving these goals and addressing wealth inequality.

Her perspective is rooted in the belief that significant public investment requires significant public funding, and she directs this funding responsibility toward those with the greatest capacity to pay. This stance positions her firmly on the left wing of the Democratic Party regarding fiscal policy and taxation of the ultra-wealthy.

Actions Taken

  1. Policy Proposal
    Proposed a marginal tax as high as 70% on income above $10 million to fund the Green New Deal.
  2. Voting Stance
    Opposed the pay-as-you-go rule supported by Democratic leaders, which constrains new expenditures.
  3. Voting Record
    Voted against final passage of the Fiscal Responsibility Act of 2023, which included deficit reduction measures.

Key Quotes

Ocasio-Cortez has proposed a marginal tax as high as 70% on income above $10 million to pay for the Green New Deal.

The Washington Post analysis January 1, 2019 — Reporting on the proposed income tax increase for the Green New Deal.

She and Representative Ro Khanna have condemned the rule [pay-as-you-go] for hamstringing new or expanded progressive policies.

Reporting context January 1, 2019 — Describing her opposition to fiscal constraint rules.

Related Positions

  • Green New Deal The proposed high marginal income tax rate is explicitly intended to finance this major environmental and economic mobilization plan.
  • Fiscal Responsibility Act of 2023 She voted against this act, which indicates opposition to fiscal restraints that might limit spending financed by progressive taxation.
  • Student Debt Cancellation Her broader economic goals, which include debt cancellation, are framed as being fundable through higher taxes on the wealthy.